Kyus-Kentucky USA Energy, Inc-Penny stock- Pump and Dump Scheme

[pennyfrog]

Some one is pumping this one. Full color flyer being mailed out. Nice little run, but how long before it crashes??

[sg1efc]

Originally Posted by pennyfrog

Some one is pumping this one. Full color flyer being mailed out. Nice little run, but how long before it crashes??

The article at this link is interesting:
http://scientifictrades.com/2008/05/...-on-paid-spam/

Kentucky USA Energy (OTCBB: KYUS) closed at 3.83 today, up some 130 percent this month and over 480 percent higher since the beginning of the year. The reason for the surge is apparently an aggressive spam campaign which began in early May. Over the past month, millions of investors have received a mailer (pictures coming soon) which touts KYUS as a “$35 stock” but includes fine print revealing that Global Investor Watch was paid $2.4 million to circulate it.

As a result of this, KYUS is now trading a patently absurd price. In fact, Kentucky Energy currently has a market valuation of over $134 million despite having no revenue, a book value of only $2 million (reference), just $53,000 in cash (reference), and only three employees (reference). According to this SEC filing, Kentucky Energy does not even own the natural gas reserves it intends to exploit. Rather, it has a lease agreement contingent upon terms it is unlikely to meet....

I don't think that run will last much longer, but I'm certainly no expert.

[pennyfrog]

Thanks for all your DD on this one. It is unreal what these crooks can get away with. No wonder they keep looking for shell companies.

[Rich1]

I received the full color mailer too. I actually read it - there was no substance, just pure pump. Most of it was about how oil is going to go much higher, but it said nothing about the company fundamentals. I wonder why?

[greencat]

Thank you all for all the info on this stock. They had a P/R today and its falling. It looks liked it spiked eariler. I hope this information kept people out of this stock and a good learning experience.

This is why we don't chase stocks..

Thanks Pennyfrog and all contributers...

[sevago00]

Originally Posted by sg1efc

The article at this link is interesting:
http://scientifictrades.com/2008/05/...-on-paid-spam/



I don't think that run will last much longer, but I'm certainly no expert.

"Global Investor Watch was paid $2.4 million to circulate it."


is global investor watch legally allowed to invest in the company they are pumping? if not, is there any way the company can legally invest in the company?

[greencat]

Originally Posted by pennyfrog

Some one is pumping this one. Full color flyer being mailed out. Nice little run, but how long before it crashes??

I wanted to thank pennyfrog again for bringing this to our attention. I also wanted to bring it back to the attention of anyone wanting to see the after effects of a Pump and Dump scheme. Pennyfrog was gracious enough to alert us of this play around $4.50 and today it slid under $2.00

It wouldnt be very nice to be holding shares on the top of that mountain. It will get a bounce but its not done selling off.

Thanks Pennyfrog and all contributers...

[BadThad]

Indeed....looks there's a big number still holding the bag if the PPS is staying at the $2 level.....poor souls.

[snow white]

Thanks for the info on this .. Question .. if for example the dump has commenced and the 'plummet' begins and we know its going to continue, then why arent we selling short on this .. I dont want to be a callous person but it does seem an opportunity to make the green . ????

[Skydaemon]

Originally Posted by snow white

Thanks for the info on this .. Question .. if for example the dump has commenced and the 'plummet' begins and we know its going to continue, then why arent we selling short on this .. I dont want to be a callous person but it does seem an opportunity to make the green . ????

2 reasons really.

1) Most people can't short pinksheets. There are a few brokers under the radar that can, but most people don't have the ability.

2) These things are just messy in general, questionable volume and tend to be pretty quick in both directions. Even brokers that can do it sometimes have restrictions on requiring upticks and the like, you usually won't see many upticks on the way down. For quicktrigger momo players with brokers that can do it, it would be a valid play and work quite well, however most people don't have that option.